NDP promises thousands of new homes at 60% market value

BC NDP Leader David Eby is promising the party will provide 25,000 new homes at 60 per cent of market value to help British Columbians put a roof over their head if the party wins the upcoming election.

In an announcement in Surrey on Wednesday, Eby shared that if his party forms the next provincial government, it will help 5,000 middle-class families a year over five years get into the housing market by covering 40 per cent of the purchase price of a home.

Eby explained the $1.29 billion program will be done through partnerships with non-profits, home builders, and institutions that might be able to provide land.

“We can’t have, especially young people who are thinking about building a life for themselves in British Columbia, giving up hope that there’s an opportunity for them here to have the same chances that their parents had,” Eby said Wednesday.

The announcement comes just days after the province, xʷməθkʷəy̓əm (Musqueam), Sḵwx̱wú7mesh (Squamish), and səlilwətaɬ (Tsleil-Waututh) Nations announced they would be building housing at Heather Lands using the same model: 60 per cent of market value — with 40 per cent of the cost covered by provincial financing.

The “Opening Doors to Homeownership” program provides financing to would-be homeowners. Not a mortgage or a grant, the NDP explains that “when a buyer sells their unit, the provincial contribution is repaid, plus 40% of the appreciation in the value of the home.”

“This allows the province to recover the full capital costs, as well as all financing costs, and a small return, without imposing costs on the seller,” the NDP stated in a release.

Eby explained the benefits to homeowners also include smaller down payments, smaller monthly payments, and “taxpayers will be protected.”

“If home values go up, revenue to the public goes up, and resources for more affordable housing projects are more available. Housing prices go down, taxpayers are protected. This is a loan. This is not a grant, and the homeowner pays interest on it, just like they would any other kind of financing,” he added.